Investigating the Association Between Students' Financial Literacy and Money-Matter Discussions With Parents, Using PISA 2018

• In Event: Educational Research With Diverse National and International Data Sets

Abstract

Financial literacy (FL) is a critical skill for young adults, especially when entering college or the workforce, that is often needed for partial or full financial independence and increased financial decision-making. Using U.S. data from the 2018 Program for International Student Assessment (PISA), this study investigates the association between 15-year-olds’ FL scores and money-matter discussions with their parents as a form of financial socialization. The results highlight demographic differences in parent-student discussion frequency and FL scores. While frequent discussions about spending decisions were associated with higher scores, frequent discussions about news on economics or finance were associated with lower scores. The frequency of financial discussions and students’ belief that they should have authority over spending decisions were not significantly associated.

Authors

• Saki Ikoma, American Institutes for Research

• Frank Torres Fonseca, American Institutes for Research

• Marissa Hall, American Institutes for Research